Recordent, a Hyderabad-based fintech startup engaged in supporting small and medium enterprises (SMEs) in recovering dues and reducing credit risk, is eyeing 1 lakh users on its platform by next financial year.

The startup, which was established in 2020 by Winny Patro and Harish Mamtani, has around 24,000 users on the platform.

Patro, who is a post-graduate from IIM Calcutta, said that delayed payments is a Rs 5 lakh crore problem faced by SMEs across the country.

“Large companies have entire departments of credit management. But SMEs do not have that kind of capability. My business partner Harish and I both have run businesses earlier and we found delayed payment a challenge in our own businesses. In 2019, we started working on creating a solution to the problem and in 2020 we launched the platform,” said Patro.

SME businesses on the Recordent platform currently can avail services ranging from credit facilities, credit reports, trade credit insurance, e-arbitration and legal services among others.

“The number of users keeps increasing on a month-on-month basis. There is a huge credit risk that SMEs take when they offer products on credit to the next businesses in the value chain. The platform provides a solution for reducing the credit risk and improving collections and cash flows,” Patro said.

“There are about 24000 users at present (on the platform). By next fiscal we should be closing down to 1 lakh users,” he said.

In order to scale up, the company is looking for a partnership with Tally, which is being used by most SMEs across the country for accounting purposes. Besides digital campaigns, the compa-ny is also looking to recruit around 100 direct sale partners.

In November 2021, Recordent had announced raising of $400,000 in angel funding from the family office of Kantamaneni and IIM Calcutta Innovation Park and other investors from India and US and is looking to raise further capital to support growth.

“We are in discussion with venture capital funds and strategic investors,” said Patro.